My dad has recently (Last year, Feb 23rd, not really recently but feels like it) He did not have a will. The money is going to be split between 3 children (Me, my brother, and my half brother) I will have 40 grand. I can not touch it untill i turn 18 (Im 17). I plan on going to technical college sometime LATER on, not right away when i graduate. But now im stuck on what i should do. I could buy a house and rent it out to people and live at home, Rent an aprtm., Buy a house with a loan. Or your suggestion. Im not sure what i want to do with it, and i wanted you to be im my position. If you had 40 grand, what would you spend it on?
2007-02-11 04:02:35 · 6 answers · asked by bobo_200813 2 in Business & Finance ➔ Renting & Real Estate
invest invest invest
2007-02-11 04:05:30 · answer #1 · answered by shania3949 6 · 0⤊ 0⤋
If you don't need to use it on living expenses, put it in a money market investment account or high-yield CD. That way, until you actually need it, it'll be earning money for you.
Buying a house to rent out isn't a good way to make your money grow. Property values can deteriorate, and you'll barely make much more than the mortgage and taxes anyway, plus then there's upkeep costs. And $40K isn't enough to buy a house, anyway. Renting an apartment is throwing money away. You have nothing to show for it when you move. Renting to own carries an incredibly high interest rate, and is something no one should EVER do. If you're still living at home, invest your inheritance until you need it (for whatever reason). You'll be surprised how fast it will grow!
2007-02-11 04:09:40 · answer #2 · answered by Bad Kitty! 7 · 0⤊ 0⤋
I'm sorry about your dad.
Okay, here's what I'd do with $40K at age 18:
1. Put it in the bank as my "retirement fund."
2. Start a Roth IRA.
3. Set the bank account up to (annually, on January 1st) automatically transfer the maximum allowable deposit into my Roth IRA until the "retirement fund" account runs dry.
4. Make sure the "retirement fund account" doesn't run dry. As you get jobs, kick in SOMETHING every month (say, 10%...have it taken from your paycheck) so it'll accrue interest.
The goal is to have this big retirement fund accumulating with little or no effort or attention by you.
Then when you get old, you won't have to worry about money.
2007-02-11 04:14:52 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Rent a really nice house, make sure the landlord is a good person. Make sure the house has no problems, or you could rent to own a house. Get a job cuz 40 grand doesn't last forever. Spend some of it on collage. Ok well i think thats wut you should do. Have fun. By!
2007-02-11 04:07:13 · answer #4 · answered by DDR QUEEN 3 · 0⤊ 0⤋
Take 30k and open a Vangaurd fund....this will go towards retirement....spend the other 10k on fun stuff....
Planning for retirement is never too early!
2007-02-11 04:07:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If I were your age, I would get an higher education,get a car,save some in the bank.
2007-02-11 04:06:53 · answer #6 · answered by Backwoods Barbie 7 · 0⤊ 0⤋